BY SHYLOH KARSHNER, Times of Northwest Indiana
Nearly 100 people gathered in Indianapolis on Wednesday to voice their concerns regarding private property rights and eminent domain -- an issue that has raised its head in recent months in Northwest Indiana.
The state's Interim Study Committee on Eminent Domain met for the first time to hear the issues regarding the commercial use of eminent domain.
Under eminent domain, the government has the right to seize private property for important public purposes. The Fifth Amendment limits the right to be used only for "public use" and only if just compensation is offered to the owners.
In June, eminent domain became an even hotter topic when a U.S. Supreme Court ruling affirmed local government's ability to acquire property for economic development purposes. The court found in favor of New London, Conn., in Kelo v. New London, allowing the city to take homeowners' property in the interest of building a business complex.
The ruling declared economic development an acceptable public goal. Economic development also is at the center of eminent domain debates in Valparaiso, where the city is trying to acquire the County Seat Plaza for redevelopment, and in Hammond, where city officials are trying to lure outdoors retailer Cabela's to the site of the Woodmar Country Club.
In the wake of this summer's ruling, many states, including Indiana, are considering changes to their eminent domain laws. The court said states can entirely ban the practice.
"The Supreme Court decision brought it to the front burner," said State Sen. Frank Mrvan, D-Hammond, a study committee member. "It's created a firestorm over the country. It really puts the private homeowner at a great disadvantage."
"I can see merits on both sides of the issue," said State Sen. Earline Rogers, D-Gary. "I think there needs to be opportunities for cities to be able to use eminent domain to spur economic development, but I have concerns relating to residents' rights.
"I am very much concerned with what the Supreme Court did," she said. "I think it's time Indiana takes a look at that to make certain we protect the rights of the citizenry."
Hammond officials are paying close attention to eminent domain law.
Cabela's Inc., a giant retailer of outdoor sporting goods, has been interested for months in the Woodmar Country Club property and has steadily upped its offers for the land from $7.5 million late last year to a pending offer of $14 million.
Mayor Thomas McDermott Jr. has avoided saying he intends to condemn the property under eminent domain law if the club members refuse to sell. However, his administration has hired a consultant at $25,000 to draft an "integrated economic development plan" for the property -- a plan specifically mentioned by the high court as necessary.
Valparaiso is involved in a condemnation suit with the owners of County Seat Plaza. Mayor John Costas was not available for comment but wrote a column on the subject last month.
"This is a crucial issue because without eminent domain power, many, if not most, public projects would not occur," he wrote. "Unlike the situation in Kelo, use of eminent domain at County Seat is not just to foster economic development, but to cure a blighted condition. Eliminating a black eye on the city requires strong medicine."
The definitions of 'blight' and 'public use' are too broad under the Indiana Constitution, Mrvan said. He said the committee will "tighten" these definitions and fine-tune the state law to the needs of its residents.
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